urniture retailer DFS noticed its earnings minimize by virtually half over the previous yr within the face of “very weak” demand.
Nonetheless, the London-listed agency noticed shares make positive factors in early buying and selling on Thursday after bosses stated they’re “assured the market will get well”.
The couch specialist additionally advised shareholders it expects a “modest” rise in earnings subsequent yr as inflationary pressures ease.
It got here after the group reported that pre-tax earnings slumped by 49% to £29.7 million for the yr to June 25.
DFS stated income from persevering with operations fell 5.2% yr on yr to £1.09 billion for the monetary yr because it noticed the “weak financial backdrop” hamper buyer spending.
While we’re assured the upholstery market will get well, forecasting the particular timing and tempo of the restoration is difficult
Nonetheless, the group pressured that it gained market share amid a “very powerful” atmosphere.
DFS stated it expects a “low single digit” improve in pre-tax revenue for the brand new yr – as a consequence of be between £30 million and £35 million – because it advantages from improved market share and profitability.
Nonetheless, it stated volumes are nonetheless anticipated to fall by round 5% for the yr.
Tim Stacey, group chief government at DFS, stated: “I need to sincerely thank our colleagues for his or her really excellent and constantly excessive degree of willpower and dedication to ship at their finest for the group, and for his or her assist in getting us to the strongest place we have now ever been when it comes to market share.
“The group is working in one of many hardest financial climates we have now skilled.
“While we’re assured the upholstery market will get well, forecasting the particular timing and tempo of the restoration is difficult.
“We do, nonetheless, count on to generate a modest year-on-year improve in revenue earlier than tax in FY24 regardless of a comparatively weak market during which we count on volumes will proceed to say no throughout the following 12 months.”
Shares in DFS have been 7.3% larger in early buying and selling.
